E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – October 25, 2018 Forecast

December E-mini NASDAQ-100 Index futures trading higher shortly after the cash market opening. There was no follow-through to the downside after yesterday’s steep sell-off. Buyers came in early to support the index. We’re probably looking at a combination of profit-taking, short-covering and value buying supporting the market early.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 7368.50 will change the main trend to up. A move through 6785.75 will signal a resumption of the downtrend with the next targets the May 3 bottom at 6590.50, the April 25 bottom at 6493.00 and the February 8 main bottom at 6385.25.

The main retracement zone support is 6822.75 to 6609.00. This zone stopped the selling at 6785.75 on Wednesday.

The minor trend is also down. A trade through 7175.00 will change the minor trend to up. This will also shift momentum to the upside.

The minor range is 7175.00 to 6785.75. Its 50% level or pivot is the first upside target. Overtaking this level will indicate the buying is getting stronger.

Daily Technical Forecast

Based on the early trade, the direction of the December E-mini NASDAQ-100 Index futures contract on Thursday will likely be determined by trader reaction to yesterday’s low at 6785.75.

A sustained move over 6785.75 will indicate the presence of buyers. Overtaking the 50% level at 6822.75 will indicate the buying is getting stronger. This could trigger a rally into the pivot at 6980.50.

Taking out 6980.50 could trigger a breakout to the upside with the first target a downtrending Gann angle at 7152.75.

A sustained move under 6785.25 will signal the presence of sellers. This is followed by an uptrending Gann angle at 6740.50. If this angle fails as support then look for the selling to extend into 6609.00 to 6590.50.